Skyservice™ Announces Development of Gogo Galileo HDX STC for Gulfstream G280

Rhea-AI Summary

Skyservice Business Aviation has announced plans to develop a Supplemental Type Certificate (STC) for implementing Gogo Galileo HDX on Gulfstream G280 aircraft. This initiative aims to provide operators with access to the latest high-speed in-flight internet solutions. Gogo Galileo, developed by Gogo Business Aviation (NASDAQ: GOGO), will offer global, high-speed in-flight internet and low-latency performance for various business aircraft sizes.

The STC will cover the Gulfstream G280, a popular super-midsize business jet with approximately 240 aircraft in operation worldwide. It is expected to be validated by multiple aviation authorities, including TCCA, FAA, EASA, ANAC, and UK/CAA. Installations are planned for Q1 2025, with a special promotional rebate of $25,000 available for current Gogo customers upgrading from legacy systems.

Positive

• Development of STC for Gogo Galileo HDX on Gulfstream G280 aircraft
• Potential for global high-speed in-flight internet and low-latency performance
• Expected validation by multiple international aviation authorities
• $25,000 promotional rebate for current Gogo customers upgrading from legacy systems

Negative

• None.

Insights

Tech Expert

The development of an STC for Gogo Galileo HDX on Gulfstream G280 aircraft is a significant advancement in business aviation connectivity. This move positions Skyservice as a frontrunner in the industry, addressing the growing demand for high-speed in-flight internet. The Gogo Galileo system, leveraging Eutelsat OneWeb's LEO satellite network, promises global coverage and low-latency performance, which is important for business operations in the air.

The potential market impact is substantial, considering there are approximately 240 Gulfstream G280 aircraft in operation worldwide. The planned validations by multiple aviation authorities (TCCA, FAA, EASA, ANAC, UK/CAA) will enable global adoption, potentially boosting Gogo's market share in the business aviation connectivity sector.

For investors, this development could translate to increased revenue streams for Gogo (NASDAQ: GOGO) through new installations and upgrades. The $25,000 promotional rebate for current customers upgrading from legacy systems is a strategic move to accelerate adoption and potentially increase long-term subscription revenues.

Financial Analyst

This announcement has positive implications for Gogo's financial outlook. The development of the STC for Gulfstream G280 aircraft opens up a new market segment for Gogo's Galileo HDX system. With installations planned for Q1 2025, we can expect to see potential revenue impact in Gogo's FY2025 financials.

The promotional rebate of $25,000 for upgrades from legacy systems is a smart move to drive adoption. While this may impact short-term margins, it's likely to result in higher long-term recurring revenue from subscriptions. Investors should monitor the adoption rate and its effect on Gogo's revenue mix and margins in the coming quarters.

Given Gogo's current market cap of $923,578,332, successful implementation and widespread adoption of the Galileo HDX system could significantly boost the company's valuation. However, investors should also consider potential risks such as competition in the aviation connectivity space and the capital expenditure required for system development and installation.

MISSISSAUGA, ON, Oct. 17, 2024 /PRNewswire/ - Skyservice Business Aviation ("Skyservice" or "the Company") is pleased to announce it will develop a Supplemental Type Certificate (STC) to implement Gogo Galileo HDX on Gulfstream G280 aircraft, ensuring operators have access to the latest high-speed in-flight internet solutions and positioning the Company as a leader in advancing connectivity for business aviation.

"At Skyservice, we are committed to staying ahead of the curve when it comes to supporting the latest advancements in business aviation," said Benjamin Murray, President and Chief Executive Officer of Skyservice. "The demand for reliable, high-speed in-flight connectivity is higher than ever, and our development of this STC for Gogo Galileo HDX is a direct response to meeting that demand with cutting-edge solutions."

Gogo Galileo, the latest innovation from Gogo Business Aviation (NASDAQ: GOGO), will provide operators worldwide with global, high-speed in-flight internet and low-latency performance for every size of business aircraft from light jets and turboprops to the largest business jets. With its compact size, the HDX will leverage Eutelsat OneWeb's enterprise-grade Low-Earth-Orbit (LEO) satellite network, designed for mobility to deliver low variability and consistent performance across all routes globally.

Skyservice's STC for Gogo Galileo HDX will cover the Gulfstream G280, a popular super-midsize business jet, with approximately 240 aircraft currently in operation worldwide. This STC is expected to be validated by Transport Canada Civil Aviation (TCCA), the Federal Aviation Administration (FAA), European Union Aviation Safety Agency (EASA), the National Civil Aviation Agency of Brazil (ANAC), and the UK Civil Aviation Authority (UK/CAA), which will allow operators globally to benefit from the latest high-speed in-flight connectivity.

Operators can contact Skyservice to submit a purchase order for the Galileo HDX, which is designed to be an easy upgrade to any AVANCE system (AVANCE L3, L5, LX5, SCS). Installations are planned for Q1 in 2025.

A special promotional rebate of $25,000 is also available for a limited time to current Gogo customers operating a legacy air-to-ground system (ATG 1000, 2000, 4000, 5000) when installing AVANCE SCS and HDX.

Skyservice experts will be onsite at the National Business Aviation Association (NBAA-BACE) in Las Vegas at booth 2651 from October 22-24, to share more about Gogo Galileo. Gogo will also offer in-person demos of the Galileo service, available at the static display at AD_325.

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About Skyservice MRO

As a comprehensive global shop for all business and commercial aircraft MRO services, Skyservice is committed to quality, service excellence, and transparent on-time project delivery. Skyservice is an approved aircraft maintenance organization of TCCA, FAA, EASA, BDCA, HK-CAD, 2-REG, Aruba and CAAS. Services include scheduled maintenance, avionics and upgrades, AOG services, aircraft parts & supplies, teardown and recycling, non-destructive testing (NDT), pre-purchase inspections (PPI) and an assortment of STCs on leading OEM brand aircraft.

About Skyservice™

Skyservice is a North American leader in business aviation dedicated to innovation, responsible operations, safety, and service excellence. Approaching 40 years of distinction, Skyservice is at the forefront of the business aviation industry with best-in-class facilities across North America. Our skilled maintenance teams, award-winning fixed base operator facilities, first-class aircraft management, private jet charter services, aircraft sales and acquisition teams combine to deliver an exceptional experience to our valued customers. To learn more, visit http://www.skyservice.com/.

About Gogo

Gogo is a leading provider of broadband connectivity services for the business aviation market. We offer a customizable suite of smart cabin systems for highly integrated connectivity, in-flight entertainment, and voice solutions. Gogo's products and services are installed on thousands of business aircraft of all sizes and mission types from turboprops to the largest global jets, and are utilized by the largest fractional ownership operators, charter operators, corporate flight departments and individuals.

As of June 30, 2024, Gogo reported 7,031 business aircraft flying with its broadband ATG systems onboard, 4,215 of which are flying with a Gogo AVANCE L5 or L3 system; and 4,247 aircraft with narrowband satellite connectivity installed. Connect with us at www.gogoair.com.

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SOURCE Skyservice Business Aviation Inc. - Mississauga, ON

FAQ

When will Skyservice's STC for Gogo Galileo HDX be available for Gulfstream G280 aircraft?

Installations for the Gogo Galileo HDX on Gulfstream G280 aircraft are planned for Q1 2025.

What is the promotional rebate offered for upgrading to Gogo Galileo HDX?

A special promotional rebate of $25,000 is available for a time to current Gogo customers operating legacy air-to-ground systems when installing AVANCE SCS and HDX.

How many Gulfstream G280 aircraft are currently in operation worldwide?

Approximately 240 Gulfstream G280 aircraft are currently in operation worldwide.

Which aviation authorities are expected to validate Skyservice's STC for Gogo Galileo HDX?

The STC is expected to be validated by Transport Canada Civil Aviation (TCCA), Federal Aviation Administration (FAA), European Union Aviation Safety Agency (EASA), National Civil Aviation Agency of Brazil (ANAC), and UK Civil Aviation Authority (UK/CAA).